Karachi: Century Insurance Company Limited has announced a significant step to bolster its financial standing through a right issue, as detailed in a report dated September 11, 2026. The company will issue an additional 44.81 million ordinary shares, each valued at PKR 10, to its current shareholders. This move is projected to increase the company's paid-up capital by approximately 81%, allowing shareholders to purchase 81 new shares for every 100 shares they currently hold.
The right issue, which aggregates to a total of PKR 448.14 million, has been approved by the board of directors in a meeting convened at the company's registered office in Karachi. The primary objective of this capital increase is to strengthen Century Insurance's capital base, thereby enhancing its working capital position and aligning with the enhanced capital requirements set by the Securities and Exchange Commission of Pakistan.
According to information available from the Pakistan Stock Exchange (PSX), the injection of new capital is expected to provide Century Insurance with improved reinsurance terms, increased underwriting capacity, and a stronger financial strength rating. This strategic move is also anticipated to support the company's broader objectives of optimizing its investment portfolio and enhancing profitability over the long term.
The proceeds from this right issue will be strategically utilized to fortify the company’s capital reserves, enabling it to secure more favorable reinsurance terms and enhance its solvency and financial stability. The strengthened capital base is expected to provide shareholders with an opportunity to participate in Century Insurance's future growth, safeguarding and potentially enhancing the value of their investments.
Century Insurance, operating within the insurance sector, aims to utilize the right issue proceeds to improve its working capital, thereby supporting ongoing business activities and ensuring smooth operations. The company’s enhanced financial position is predicted to generate higher returns, contributing to its sustainable growth trajectory.
As of the report date, the company has yet to finalize the closure dates for the share transfer books, which will determine shareholder entitlements for the right issue. This information will be communicated following the finalization of the offering document, in compliance with the Companies (Further Issue of Shares) Regulations, 2020.